Yolanda is buying a car with a base price of $16,750. She must also pay the options, fees and taxes. Options are $500, fees are $370 and taxes are $1,425. The car dealership will give her a 48 months to pay off the entire amount. Yolanda can only afford to pay $395 each month. Will she be able to buy the car? Explain
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To determine if Yolanda will be able to afford the car, we need to calculate the total cost of the car, including the base price, options, fees, and taxes. Once we have that total cost, we can divide it by the number of months she has to pay to find out if her monthly payment is sufficient.
To calculate the total cost of the car, we add the base price, options, fees, and taxes:
Total cost = Base price + Options + Fees + Taxes
Total cost = $16,750 + $500 + $370 + $1,425
Total cost = $18,045
Now, we divide the total cost by the number of months Yolanda has to pay to find the monthly payment:
Monthly payment = Total cost / Number of months
Monthly payment = $18,045 / 48
Monthly payment ≈ $375.94
So, Yolanda's monthly payment will be approximately $375.94. However, she can only afford to pay $395 each month.
Since $395 is greater than $375.94, Yolanda will be able to buy the car and make the monthly payments without any issues.